Gap analysis

A category of techniques based on the idea that if one can position all of a market’s products onto a two-dimensional chart, they will not be spread around like butter on bread. Rather, they will clump in some places and be void in others. Any void (gap) offers an opportunity for new product. The charting uses X and Y-axes and plots against such attributes as price, strength, speed and ease of use. This exercise enables a company to compare its actual performance against its potential performance, and then determine the areas in which it must improve. Through this exercise, a MNC or international company will be able to find the differences between total market potential and company’s sales in different foreign markets.